TechFlow news, according to Cointelegraph, investment firm Kerrisdale Capital is shorting MicroStrategy stock, arguing that its price carries an "unjustifiable premium" relative to the value of bitcoin. Sahm Adrangi, chief investment officer of Kerrisdale Capital, stated that MicroStrategy’s business model largely relies on holding a large amount of bitcoin, but this is insufficient to justify its high valuation.
According to their report, MicroStrategy's stock trades at a valuation equivalent to two and a half times the actual price of its underlying bitcoin holdings. Adrangi recommends shorting MicroStrategy shares while going long on bitcoin. MicroStrategy currently holds 226,331 BTC, worth approximately $14.6 billion.
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